RNS Number:6071I
CPL Resources PLC
07 September 2006
CPL RESOURCES plc
Full Year Results for the Year Ended 30th June 2006
Record Results for Cpl; Profit before Tax up 83%; EPS up 81%
CPL Resources plc, Ireland's leading employment services group, today announced
full year results for the year ended 30th June 2006.
Financial Highlights
* Sales Euro148 m up 41% (2005: Euro105 m)
* Net Fee Income Euro28.2m up 40% (2005: Euro20.1 m)
* Profit before tax Euro10.6m up 83% (2005: Euro5.8 m)
* Earning per share 25.1 cent up 81% (2005: 13.9 cent)
* Conversion ratio 37.5% (2005: 29%)
* Cash Euro21.3m (2005: Euro11.7 million)
* Dividend 2.9 cent per share (2005: 1.8 cent)
Commenting on the group's performance and outlook, Cpl Chief Executive, Anne
Heraty, said:
"We are delighted with the performance of the Group. Our growth in sales of 41%
which is almost entirely organic follows a similar increase in sales in the
previous year. These results reflect the core strength of Cpl - our ability to
understand and respond to the changing needs of our clients.
In the year to June 2006, we continued to invest in expanding each specialist
brand and on growing our teams of recruitment consultants. Recruiter numbers
increased from 163 in June 2005 to 188 in June 2006. As a result of our
investment in training, in hiring new people and in developing innovative and
effective services for our clients, we believe we are well prepared to take
advantages of changes in the marketplace and to deliver exceptional solutions to
our clients
John Hennessy Chairman of the Group said
"The Group's increased revenue and gross profit reflect substantial increases in
profitable activity across all sectors and markets, and a strong performance in
each of our principal business areas, being the placement of contract, temporary
and permanent employees with clients.
The fact that a 41% increase in revenue resulted in an almost doubling of
pre-tax profits year on year demonstrates the Group's ability to grow our
business aggressively while maintaining rigorous cost control.
Cpl is a much larger, more diverse and more robust business than it was a few
years ago. Our management and staff face and overcome daily challenges in
continuing to deliver profitable growth. We remain confident in our ability to
take advantage of favourable economic conditions and to identify and pursue
opportunities for further growth, whether organically or by acquisition."
About Cpl Resources plc
Cpl is a specialist provider of recruitment and employment services, operating
through distinct specialist brands in a wide range of business sectors,
including technology, accounting and finance, healthcare, pharmaceutical, sales,
engineering, light industrial, and office administration.
Chairman's Statement
The year to 30 June 2006 was a very good one for Cpl. The Group has delivered
its best results to date, producing very substantial growth in turnover, net fee
income and profits.
The key highlights for the period include:
* Earnings per share of 25.1 cent, compared with 13.9 cent for the year
to June 2005
* Revenue of Euro148 million, representing growth of 41% year on year
* Gross profit of Euro28.2 million, up 40% from Euro20.1 million in the year to
June 2005
* Profit before tax of Euro10.6 million, an increase of 83% over the prior year
* Cash balances of Euro21.3 million at 30 June 2006 (Euro11.7 million at 30
June 2005)
The Group's increased revenue and gross profit reflect substantial increases in
profitable activity across all sectors and markets, and a strong performance in
each of our principal business areas, being the placement of contract, temporary
and permanent employees with clients.
Net fee income in our permanent placement business increased by 39% over the
prior year, with all divisions performing well. This performance has been
helped by increased demand for IT, Telecoms and Finance professionals. Our
contractor and temporary fees have increased by 42%, reflecting growth in the
demand for non-permanent staff in all areas, including office management and
administration, customer service, engineering, healthcare and manufacturing
operations, and for temporary staff in the pharmaceutical, biotechnology,
clinical research and medical device industries. Newer areas of our business
also performed well in the period. These included Cpl Managed Services, which
manages selected business processes (including call centres, administrative
services and recruitment solutions) on behalf of clients.
The Group had cash balances of Euro21.3 million at 30 June 2006. Notwithstanding
the working capital demands associated with strong growth in business activity,
this figure is Euro9.6 million higher than the corresponding balance at 30 June
2005. Our excellent business development team is supported by strong back
office personnel who have ensured that the 41% growth in revenue has resulted in
only a 6% increase in trade debtors.
As we noted in our 2005 annual report, the Group's ability to generate growth
and profits is linked closely to the performance of the Irish economy, and we
have benefited from growth in most of the sectors in which we operate. The fact
that a 41% increase in revenue resulted in an almost doubling of pre-tax profits
year on year demonstrates the Group's ability to grow our business aggressively
while maintaining rigorous cost control.
One of Cpl's central tenets is our commitment to quality people. We believe
that in order to source and place the best people and to provide the best
service to our clients we must recruit, train and retain the very best people in
our own business. Over the years we have invested significantly in people whose
efforts and abilities align with those of the Group itself. As Cpl continues to
deliver growth we will maintain our focus on investment in people.
Cpl is a much larger, more diverse and more robust business than it was a few
years ago. Our management and staff face and overcome daily challenges in
continuing to deliver profitable growth. We remain confident in our ability to
take advantage of favourable economic conditions and to identify and pursue
opportunities for further growth, whether organically or by acquisition.
Cpl's success is the result of having the best people in the business and we are
very grateful for their dedication, skill and sustained commitment to the Group.
Their continuing efforts to deliver top class service to all our clients and
customers have made us Ireland's leading provider of employment services. I
would also like to extend the appreciation of the Board to our customers for
their continued loyalty and support.
The Board is recommending a final dividend of 1.5 cent per share. The dividend
will be payable on 5 October 2006 to shareholders on the company's register at
the close of business on the record date of 15 September 2006. The final
dividend together with the interim dividend of 1.4 cent per share, amounts to a
total dividend of 2.9 cent per share.
JOHN HENNESSY
Chairman
7th September 2006
Group income statement
for the year ended 30 June 2006
2006 2005
Euro'000 Euro'000
Revenue 148,065 105,265
Cost of sales (119,898) (85,193)
Gross profit 28,167 20,072
Distribution expenses (1,725) (1,528)
Administrative expenses (16,111) (12,845)
Operating profit 10,331 5,699
Financial income 255 108
Financial expenses (20) (25)
Profit before tax 10,566 5,782
Income tax expense (1,278) (666)
Profit for the financial year 9,288 5,116
Basic earnings per share 25.1 cent 13.9 cent
Diluted earnings per share 24.9 cent 13.8 cent
Group balance sheet
at 30 June 2006
2006 2005
Assets Euro'000 Euro'000
Non-current assets
Property, plant and equipment 1,144 811
Goodwill and intangible assets 6,518 5,789
Deferred tax asset 42 -
Total non-current assets 7,704 6,600
Current assets
Trade and other receivables 17,025 13,372
Cash and cash equivalents 21,292 11,661
Corporation tax refundable 81 -
Total current assets 38,398 25,033
Total assets 46,102 31,633
Equity
Issued share capital 3,714 3,688
Share premium 1,686 1,671
Other reserves (3,300) (3,300)
Retained earnings 26,522 18,051
Total equity 28,622 20,110
Liabilities
Non-current liabilities
Provisions 177 111
Financial liabilities 317 300
Total non-current liabilities 494 411
Current liabilities
Trade and other payables 16,688 10,892
Corporation tax payable - 85
Provisions 219 119
Financial liabilities 79 16
Total current liabilities 16,986 11,112
Total liabilities 17,480 11,523
Total equity and liabilities 46,102 31,633
Group cash flow statement for the year ended 30 June 2006
2006 2005
Euro'000 Euro'000
Cash flows from operating activities
Profit for the financial year 9,288 5,116
Adjustments for:
Depreciation on property, plant and equipment 223 226
Amortisation of intangible assets 54 49
Financial income (255) (108)
Financial expense 20 25
Income tax expense 1,278 666
Operating profit before changes in
working capital and provisions 10,608 5,974
(Increase) in trade and other receivables (3,620) (1,583)
Increase in trade and other payables 5,715 3,280
Cash generated from operations 12,703 7,671
Interest paid (20) (25)
Income tax paid (1,493) (736)
Interest received 255 108
Net cash from operating activities 11,445 7,018
Cash flows from investing activities
Acquisition of subsidiary, net of cash acquired (194) -
Deferred consideration paid (234) (179)
Purchase of property, plant and equipment (550) (178)
Purchase of intangible assets (140) (155)
Net cash from investing activities (1,118) (512)
Cash flows from financing activities
Repayment of borrowings (30) (106)
Proceeds from new loan 93 -
Dividends paid (817) (516)
Proceeds from issue of share capital 41 26
Net cash from financing activities (713) (596)
Net increase in cash and cash equivalents 9,614 5,910
Cash and cash equivalents at beginning of year 11,661 5,751
Cash and cash equivalents at end of year 21,275 11,661
For Further Information:
Anne Heraty, CPL Resources, 01 614 6000
Josephine Tierney, Finance Director, 01 6146000
7th September 2006
This information is provided by RNS
The company news service from the London Stock Exchange
END
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